Understanding Deposit Insurance

FDIC deposit insurance protects your money in deposit accounts at FDIC-insured banks in the event of a bank failure. Since the FDIC was founded in 1933, no depositor has lost a penny of FDIC-insured funds.

How FDIC Deposit Insurance Works

The FDIC helps maintain stability and public confidence in the U.S. financial system. One way we do this is by insuring deposits to at least $250,000 per depositor, per ownership category at each FDIC-insured bank.

The FDIC maintains the Deposit Insurance Fund (DIF), which:

• Insures deposits and protects depositors of FDIC-insured banks and
• Helps fund our resolution activities when banks fail.

The DIF is backed by the full faith and credit of the United States government, and it has two sources of funds:

• Assessments (insurance premiums) that FDIC-insured institutions pay and
• Interest earned on funds invested in U.S. government obligations. The FDIC buys Treasury notes, and the interest on those notes helps the DIF grow.

FDIC deposit insurance only covers deposits, and only if your bank is FDIC-insured.

Make sure your bank is FDIC-insured, using the BankFind Suite search tool.

How to Know If Your Account is Covered

FDIC insurance covers deposits in all types of accounts at FDIC-insured banks, but it does not cover non-deposit investment products, even those offered by FDIC-insured banks. Additionally, FDIC deposit insurance doesn’t cover default or bankruptcy of any non-FDIC-insured institution.